Iran-Israel War: India orders refineries to boost LPG production for domestic use

The Ministry of Petroleum and Natural Gas (MoPNG) on Monday announced measures to strengthen domestic LPG supplies in response to current geopolitical disruptions affecting fuel availability.

"In light of current geopolitical disruptions to fuel supply and constraints on supply of LPG, Ministry has issued orders to oil refineries for higher LPG production and using such extra production for domestic LPG use," the ministry said in a statement.

The ministry has made domestic household LPG supply a priority, introducing a 25-day inter-booking period aimed at curbing hoarding and black marketing. Meanwhile, imported LPG is being reserved for critical non-domestic users such as hospitals and educational institutions.


For other non-domestic sectors, including restaurants, hotels, and industrial users, the ministry has set up a review committee. "A committee of three EDs of OMCs have been constituted to review the representations for LPG supply to restaurants/hotels/other industries," the statement added.

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The move comes as oil markets experience a dramatic spike in prices following the unexpected closure of the Hormuz Strait, which has led to significant supply-chain interruptions. Nations are increasingly focused on safeguarding their energy supplies, prompting Iraq, Kuwait, and Qatar to temporarily deactivate parts of their energy infrastructures.

The ministry’s actions aim to ensure that households and essential services in India continue to receive uninterrupted LPG supplies despite the global turmoil.